Palm Springs approves ordinance limiting food delivery services charges

The Palm Springs City Council recently approved an ordinance that limits the fees that food delivery services can charge residents and businesses.

Food delivery service refers to things like Uber Eats, Postmates, and DoorDash.

The new ordinance is part of an effort to prevent food delivery services from overcharging customers and businesses during the COVID-19 pandemic

The new ordinance establishes the following limitations:

• Food delivery services cannot charge more than a 15% delivery fee on the purchase price of each online order.
• No more than 5% of the purchase price can be charged to the business for any combination of service fees.
• All tips must go exclusively to the driver.
  • Example: If a customer orders a meal that is advertised at $10 on the third-party delivery service’s app, the delivery service cannot charge more than $10 for the meal. Nor can the service provider charge the restaurant more than $1.50 as a delivery fee -- or the restaurant more than 50 cents as a fee or commission for their placement on the delivery service’s app. If the customer agrees to provide the delivery person a $2 tip, that tip amount must go to the delivery person; not the third-party delivery service company.

For more information, visit palmspringsca.gov.